Worldwide Converged Systems Revenue Decreased 1.4% Year Over Year in
the Fourth Quarter of 2016 with Vendor Revenue at $3.09 Billion,
According to IDC

March 23, 2017 08:00 PM Eastern Daylight Time

FRAMINGHAM, Mass.--(EON: Enhanced Online News)--According to the International Data Corporation (IDC)
Worldwide
Quarterly Converged Systems Tracker, worldwide converged systems
market revenues decreased 1.4% year over year to $3.09 billion during
the fourth quarter of 2016 (4Q16). The market consumed 1.6 exabytes of
new storage capacity during the quarter, which was up a moderate 4.0%
compared to the same period a year ago. For the full year 2016,
worldwide converged systems market revenues increased 5.8% to $11.3
billion when compared to 2015.

“The converged systems market is going through a period of change”

"The converged systems market is going through a period of change," said Eric
Sheppard, research director, Enterprise Storage & Converged Systems.
"We are seeing strong growth from products with new architectures,
increased levels of automation, and heavy use of software-defined
technologies. This growth has been offset by reduced spending on
traditional converged systems and a conscious decision by some vendors
to terminate some parts of their product portfolio."

Converged Systems Segments

IDC's converged systems market view offers four segments: integrated
infrastructure, certified reference systems, integrated platforms, and
hyperconverged systems. Integrated infrastructure and certified
reference systems are pre-integrated, vendor-certified systems
containing server hardware, disk storage systems, networking equipment,
and basic element/systems management software. Integrated Platforms are
integrated systems that are sold with additional pre-integrated packaged
software and customized system engineering optimized to enable such
functions as application development software, databases, testing, and
integration tools. Hyperconverged systems collapse core storage and
compute functionality into a single, highly virtualized solution. A key
characteristic of hyperconverged systems that differentiate these
solutions from other integrated systems is their scale-out architecture
and their ability to provide all compute and storage functions through
the same x86 server-based resources.

During the fourth quarter of 2016, the combined integrated
infrastructure and certified reference systems market generated revenues
of $1.57 billion, which represented a year-over-year decrease of 15.7%
and 50.8% of the total market. Dell Technologies was the largest
supplier of this combined market segment with $705.1 million in sales,
or 44.9% share of the market segment.

Integrated Platform sales declined 8.6% year over year during the fourth
quarter of 2016, generating $823.5 million worth of sales. This amounted
to 26.6% of the total market revenue. Oracle was the top-ranked supplier
of Integrated Platforms during the quarter, generating revenues of
$406.9 million and capturing a 49.4% share of the market segment.

* Note: IDC declares a statistical tie in the worldwide converged
systems market when there is a difference of one percent or less in the
vendor revenue shares among two or more vendors.

Hyperconverged sales grew 87.3% year over year during the fourth quarter
of 2016, generating $697.4 million worth of sales. This amounted to
22.6% of the total market value. The hyperconverged system market
surpassed $2.2 billion in global revenue during the full calendar year
(2016), which was 110% higher than 2015.

In addition to the tables above, an interactive graphic showing
worldwide revenues for the four converged systems product categories
over the previous five quarters is available here.
Instructions on how to embed this graphic into online news articles and
social media can be found by viewing this
press release on IDC.com.

Taxonomy Notes:IDC defines converged and hyperconverged
systems as pre-integrated, vendor-certified systems containing server
hardware, disk storage systems, networking equipment, and basic
element/systems management software. Systems not sold with all four of
these components are not counted within this tracker. Specific to
management software, IDC includes embedded or integrated management and
control software optimized for the auto discovery, provisioning and
pooling of physical and virtual compute, storage and networking
resources shipped as part of the core, standard integrated system.
Numbers in this press release may not sum due to rounding.

For more information about IDC's Worldwide Quarterly Integrated
Infrastructure and Platforms Tracker, please contact Lidice Fernandez at
305-351-3057 or lfernandez@idc.com.

About IDC TrackersIDC
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